SMEs seek govt help in boosting exports

Zakki Hakim, The Jakarta Post

Small and medium-sized enterprises (SMEs) have called on the government to provide help in promoting their products overseas in a bid to boost their exports.

The SMEs have also asked the government for cheap loans to finance working capital.

"The U.S. and Middle East are some of our main export destinations but there are other countries with great potential and the government should help us penetrate those markets," Tri Isfarikha from Regol Craft, a leather and handicraft specialist, told The Jakarta Post.

Her company usually exports its products to Spain and the U.S. but it has difficulties in effectively penetrating markets in other countries.

The company was one of 817 small and medium-scale exporters from across the country that took part in last week's five-day 2003 Indonesia Expo at the Jakarta Convention Center, which was organized by the National Agency for Export Development (BPEN) of the Ministry of Industry and Trade.

BPEN is planning a number of trade promotional activities overseas this year in a bid to help boost exports, but small exporters said that they could not participate in the program because they lacked the money to travel there.

Experts have said that helping the SMEs could be one way to improve the country's weak export performance as their low-end manufactured products were relatively immune to the negative effects of the economic slowdown in developed nations.

Most of the exporters interviewed by this paper expressed optimism that exports this year would continue to increase, with some even claiming up to a 50 percent rise.

There is no data available on the real contribution of the SMEs to the country's total exports of about US$57 billion last year.

"The government should help us promote our products overseas," said Yonni Soeharyo of Watu Dewa Art, a furniture manufacturer.

He said that the current worldwide phobia of terrorism was discouraging overseas buyers from coming to this country to look for products, so local manufacturers had to fly overseas to promote them.

"We hope that there will at least be accommodation for us while we are participating in the (overseas) exhibition," he said.

He added that the possible war in Iraq made the overseas promotion more important for helping penetrate other markets less affected by the situation.

Meanwhile, Sarah Widjanarko from Anya Design, which specializes in manufacturing bags, shoes, clothing and accessories, urged the government to provide soft loans, particularly for small exporters, to finance working capital.

She explained that foreign buyers normally pay only 30 percent up front for each transaction and then pay the balance once the goods arrive at the destination and were according to the specific order. But many small exporters experience difficulty in fully financing production costs under this arrangement.

"We need low interest loans, and the government should also simplify the export procedure," she said.

"The government should focus more attention on SMEs because we have the potential to bring more dollars in," she added.